Monday, December 21, 2009

Wash sale rule is it 30 days after the sell or 30 days from settment date? TIA?

The settlement date if you repurchased would be the same distance from the buy order as the sell order so 30 days from sale order.Wash sale rule is it 30 days after the sell or 30 days from settment date? TIA?
In general you have a wash sale if you sell stock at a loss, and buy substantially identical securities within 30 days before or after the sale.





Example: On March 31 you sell 100 shares of XYZ at a loss. On April 10 you buy 100 shares of XYZ. The sale on March 31 is a wash sale.





The wash sale period for any sale at a loss consists of 61 days: the day of the sale, the 30 days before the sale and the 30 days after the sale. (These are calendar days, not trading days. Count carefully!) If you want to claim your loss as a deduction, you need to avoid purchasing the same stock during the wash sale period. For a sale on March 31, the wash sale period includes all of March and April.Wash sale rule is it 30 days after the sell or 30 days from settment date? TIA?
A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you: *Buy substantially identical stock or securities, *Acquire substantially identical stock or securities in a fully taxable trade, or *Acquire a contract or option to buy substantially identical stock or securities.





If your loss was disallowed because of the wash sale rules, add the disallowed loss to the cost of the new stock or securities. The result is your basis in the new stock or securities. This adjustment postpones the loss deduction until the disposition of the new stock or securities.





Read http://taxipay.blogspot.com/2008/04/list鈥?/a>
It's the settlement date - and the wash rule states that purchase made within a 30 d period of the settlement... etc. So you actually cannot purchase the same security or property until day 31.

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